2001 AGN DEC 04 I16 - Laserfiche WebLink

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Report ta Redevelopment Agency Board regarding EVLC Agreement November 26, 2001 Page 4 of 5 annual incentive payments from the City and Agency. The City rebates 50% of the sales taxes and the Agency contributes 34% of the gross property tax increment from development on the site. The property tax rebates continue until the public improvement costs are recovered by the Developer with interest at 6% based upon a maximum principal recovery of $2.85 million or June 30, 2019, whichever occurs first. The sales tax rebate continues until excess public improvement costs and City fees are recovered with interest at 6% or June 30, 2020 whichever is first. The Agency's present value contribution under this Option is $2.3 million. Cooley Drive is not reconstructed under this Option. The Agency does not issue or secure debt but simply makes annual incentive payments to the Developer who must raise all public improvement funds. Environmental Impact There is no additional environmental impact. The projecYs environmental impacts were evaluated during the land use entitlement process. Consistency with Redevelopment Implementation Plan The proposed agreement is consistent with the Redevelopment Implementation Plan as it facilitates the construction of public improvements necessary to support private development. The project was specifically included in the Redevelopment Implementation Plan. Financial Impact The financial impact for each option was described above. None of the options was budgeted in the current fiscal year and a budget adjustment will be necessary when the final option is determined. The projected City/Agency savings/benefits for Options 1 and 2 compared to the current agreement terms is summarized as follows: Option 1A EDA GranUlB Option 16 EDA GranUSTAB's Option 2A No EDA/IB Option 26 No EDA/STAB's $1,273,513 $ 983,225 $1,034,037 $ 820,219 The major budget issue is the source of the $600,000. For options 1 and 2, the Agency Cash Advance is intended to be a short term advance from Cooley Ranch project accounts with subsequent reimbursement from the issuance of debt or the EDA grant. The long term financial impact is expected to be positive by reducing the Agency's annual debt obligation. For option 3, the advance will be a credit against future incentive payments so the Agency could finance it from unencumbered cash balances or issue debt to the extent permitted by the Agreement. With the anticipated November, 2001 payment of delinquent Rancho Mediterrania property taxes, the Cooley Ranch Debt Service Fund 895 is expected to have sufficient cash to make the Advance. However, the Amendment provides that the Developer must return the advance by June 30, 2001 if Option 3 is taken.