Title
Staff Report for Resolutions of the City of San Leandro Acting in Its Capacity as the Successor Agency to the Redevelopment Agency and the City of San Leandro Authorizing Execution of an Amended and Restated Promissory Note
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council of the City of San Leandro and the City Council, serving in its capacity as the Successor Agency to the Redevelopment Agency, approve Resolutions Re-Entering into an Amended and Restated Promissory Note, thereby re-affirming a 2004 loan between the City and the Redevelopment Agency.
BACKGROUND
On April 8, 2004, the Redevelopment Agency of the City of San Leandro (Agency) executed a Promissory Note to acknowledge a loan of $4,372,774 from the City to the City of San Leandro - Alameda County (Joint) Redevelopment Project Area. That loan was subsequently memorialized via Agency Resolution 2004-011 RDA, approved on June 21, 2004. At the time of the Agency’s dissolution on February 1, 2012, the balance on this loan was $2,040,767.68 and that amount was added to the Agency’s Enforceable Obligation Payment Schedule (EOPS) and Recognized Obligation Payment Schedule (ROPS).
This loan was made to advance redevelopment projects, most particularly the development of the San Leandro Automall. The interest rate was set at 6 percent per annum. Based on the most current debt service schedule, annual payments of $173,477.05 were owed to the City through 2032.
After the approval of the ROPS by the City Council (serving as Successor Agency) on April 2, 2012 and the Successor Agency Oversight Board on April 6, 2012, the California Department of Finance (DOF) exercised its right to conduct a review of the list of Enforceable Obligations. Upon completion of that review, the DOF informed the City that it did not consider some items to be enforceable because, with very limited exceptions, Assembly Bill x1 26 does not recognize agreements between a redevelopment agency and the ...
Click here for full text