Title
Staff Report for Resolutions of the City Council and the Successor Agency to the Redevelopment Agency of the City of San Leandro Re-Entering Into a Loan Agreement for the Plaza Project Loan with the City of San Leandro
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council and the Governing Body of the Successor Agency to the former Redevelopment Agency of the City of San Leandro approve the Resolutions Reinstating the Loan Agreement and Amending and Restating the Promissory Note for the Plaza Project Loan, with an outstanding balance of $2,299,315, plus interest.
BACKGROUND
In 2002, the City of San Leandro loaned the Redevelopment Agency of the City of San Leandro $2,887,617.44 for the purposes of carrying out redevelopment activities in the Plaza Project Area ("Plaza Project Loan"). On December 5, 2002, a Promissory Note was executed to acknowledge the loan. On June 21, 2004, Resolution 2004-011 RDA confirmed and codified the loan, which had a remaining balance at the time of $2,569,400.00.
On March 7, 2011, in response to a proposal by the State Legislature to eliminate all redevelopment agencies state-wide, the Redevelopment Agency passed Resolution No. 2011-006 RDA, which authorized full repayment of the Plaza Project Loan in the amount of $2,137,273.49. Earlier that year, the Redevelopment Agency also made a regularly scheduled debt service payment on the loan of $300,000. Total payments made in 2011 were $2,437,273.
In June of 2011, the State Legislature adopted Assembly Bill AB x1 26 ("AB 26"), which caused the dissolution of all redevelopment agencies. AB 26 included a "claw back" provision that retroactively invalidated payments made on City-Agency loan agreements after January 1, 2011. On December 12, 2013, the Successor Agency initiated litigation challenging the "claw back" of payments made toward Redevelopment Agency loans after January 2011, as well as the California Department of Finance's (DOF...
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